Duty Free Import Authorisation (DFIA) - CBEC's Customs Manual 2023 - Customs

4. Duty Free Import Authorisation (DFIA): 4.1 DFIA issued under the FTP 2009-14 are similar to AA in many aspects including requirement of monitoring. However, DFIA has a minimum value addition requirement of 20% and once export obligation is completed, transferability of the authorization and / or material imported against it is permitted. The DFIA is issued only where SION are notified. After the annual supplement 2013 to the FTP 2009-14, the exemption from antidumping duty and safeguard duty is not available when materials are imported against a DFIA made transferable. In case imported materials are transferred, the importer is to pay an amount equal to the anti-dumping and safeguard duty leviable on the material, with interest. These aspects apply subject to specified conditions. 4.2 Under the FTP 2015-20, only post-export transferable DFIA with exemption from only Basic Customs duty is issued by RA. Such DFIA is not available for Gems and Jewellery sector or where SION prescribes actual user condition (for example, fuel). The admissibility of brand rate of duty drawback is as per para 4.26 of the FTP. For transferrable DFIA, prior to registration it is to be verified that the details of the exports given along with the DFIA match the record of exports and is genuine. If any discrepancy is found it need to be first referred to the RA. [Refer Circular No. 12/2016) [Refer Circulars No.11/2009-Cus., dated 25-2-2009 and No.6/2011-Cus dated 18-1-2011 and Notification No.98/2009-Cus dated 11-09-2009 and No.19/2015-Customs dated 1-4-2015]